Low, medium and high risks. What do they mean?
risk management (noun) — the technique or profession of assessing, minimizing, and preventing accidental loss to a business or person
We often forget that in our day to day lives, we have to make decisions that involve risk. Some situations might put us in danger, requiring a higher risk to be taken, while other situations might require a minimal risk resulting in an easier decision process. This decision process is a skill that we humans have learned with the years of living our lives. Now, you might be asking yourself, how does this relate to risks on the TradeTrust platform? Let’s break it down.
The key and success in running the TradeTrust platform results in profitable day trading. One of the features that TradeTrust guarantees its users is that it will pay the trade contract return in Ethereum after 24 hours. In order to do so, the TradeTrust trading team must strategize each trade and generate the maximum profit possible. In order to do this, risk is involved.
TradeTrust offers users the ability to choose what risk level they would like their trade contract to have. The three different levels are:
- Low
- Medium
- High
The different risk levels require certain measures to take place before creating a trade. These measures are the decision process that the trading team conducts in order to either get a green or red light for a trade. A green light means that all the measures have met the requirements and the trading team is able to place the trade, while the red light means that at least 1 requirement was not met. For each risk level, the amount of requirements varies.
A high risk level has the most requirements that the trading team has to go over and review before placing a trade. The time it takes to review a high risk trade and the process are the highest compared to all the risk levels. Resulting in this, a trade contract with a high risk has the highest chances in gaining the most potential ROI (return on investment). This can be anywhere from 0–200% and more. It is important to mention that a trade can also potentially lose if the market decides to take a different route than what was predicted. This does not mean you will lose all your trade contracts budget. All the trades that we conduct have a stop limit set.
As mentioned, a higher risk level has a longer decision process. Due to this, TradeTrust takes a higher operation fee. A lower risk will have a less decision process, resulting in a lower operation fee. A trading fee is added in addition according to the exchange trade fee that is charged.
Example:
A trade contract is created with a budget of $1000 and a medium risk level.
Trading team conducts a trade that results in a 12% profit gain.
$1,000 * 0.12 = $120
Out of the $1,120 that the user will receive, the team will deduct the trade fee (charged by the exchange the trade was run on) and an operation fee. These fees can result anywhere between 0.8–3.5%. For a medium risk level, let’s take an average of 1.7%.
$1,120 * 0.017 = $19.04
The final amount that the user will be credited to their account will be $1,100.96.
The example above can give you a basic understanding of how the return works. This example is only if the trade was profitable. Please remember, trades can result in a loss.
As a promotion, we will be offering each user 3 trades with 0 trading and operation fees, and if a trade results in a loss, we will not charge the loss. This promotion will be active for users that have purchased tokens in the pre-sale process of the ICO.
Register today at https://dashboard.tradetrust.ai
Read our WP: https://www.tradetrust.ai/wp_v1.2.pdf
If you have any questions about the trading process, the TradeTrust platform, please reach out on our Telegram chat channel.
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